Global mining deals picking up, but far from returning to boom times

Companies’ low valuation, the current focus on operational efficiency in the mining sector, and the chase for overseas assets by Chinese investors will give M&A activity a big push.

Upbeat news for the mining industry keep piling up, with most major research groups including PwC and E&Y, predicting a significant increase in mining deals this year. The latest one to come up with optimistic data on the matter is Business Monitor, which also warns austerity will remain a key priority for mining firms.

In its article examining trends in global mining M&A activity, the experts say they expect mining mergers and acquisitions to pick up over the coming quarters, driven mainly by low valuations of resource firms, the push for operational efficiency in the sector and the chase for overseas assets by Chinese investors.

By Business Monitor

While the surge in deals will no be comparable to boom times levels, (M&A) activity in the mining sector should continue to gather pace in the second half of the year.